Molaris IPO under fire

Product Shipping Limited is planning to pursue a US listing but not everyone is convinced that the campaign will bear fruit.

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Stamatis Molaris

According to a biography found in the company's IPO prospectus the industry veteran boasts over 20 years of experience in the shipping space.

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In a client briefing Erik Nikolai Stavseth of Arctic Securities praised the Greek product tanker owner’s employment portfolio but questioned whether this will be enough to drum up interest amongst investors.

“While the company has backing in fixed charters, we think that the ‘partial exit’ strategy of private equity and financial players could pose a challenge as investors appear to prefer companies with solid history and commitment,” he explained.

“Product Shipping Limited may have a place in the public market, but we think it will be a hard sell as investors at this point in the cycle seem to want consolidation rather than new stocks to choose from.”

Stavseth, who believes there will be a sharp increase in initial public offering (IPO) and merger-and-acquisition activity over the next 12 months, expects to see the operator target proceeds north of $150m if it moves forward with a Nasdaq float.

As we reported many believe Product Shipping Limited will serve as a test case for other product tanker owners that have their sights set on US listings. Observers say fundraising initiatives will likely shape after the Labor Day holiday on 1 September.

According to securities filings the operator, which oversees ten products tankers and is backed by Greek shipping mogul Stamatis Molaris, submitted an IPO prospectus on a confidential basis in early June. This was followed by two revisions.

A copy of the most recent version of the prospectus, which was published late last week and is over 400 pages long, can be viewed in full by clicking on the link located under the Related Media section to the right of this article.

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